[111th Congress Public Law 312]
[From the U.S. Government Printing Office]
[[Page 3295]]
TAX RELIEF, UNEMPLOYMENT
INSURANCE REAUTHORIZATION, AND
JOB CREATION ACT OF 2010
[[Page 124 STAT. 3296]]
Public Law 111-312
111th Congress
An Act
To amend the Internal Revenue Code of 1986 to extend the funding and
expenditure authority of the Airport and Airway Trust Fund, to amend
title 49, United States Code, to extend authorizations for the airport
improvement program, and for other purposes. <<NOTE: Dec. 17,
2010 - [H.R. 4853]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Tax Relief,
Unemployment Insurance Reauthorization, and Job Creation Act of 2010.>>
SECTION 1. SHORT TITLE; ETC.
(a) <<NOTE: 26 USC 1 note.>> Short Title.--This Act may be cited as
the ``Tax Relief, Unemployment Insurance Reauthorization, and Job
Creation Act of 2010''.
(b) Amendment of 1986 Code.--Except as otherwise expressly provided,
whenever in this Act an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provision of the
Internal Revenue Code of 1986.
(c) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; etc.
TITLE I--TEMPORARY EXTENSION OF TAX RELIEF
Sec. 101. Temporary extension of 2001 tax relief.
Sec. 102. Temporary extension of 2003 tax relief.
Sec. 103. Temporary extension of 2009 tax relief.
TITLE II--TEMPORARY EXTENSION OF INDIVIDUAL AMT RELIEF
Sec. 201. Temporary extension of increased alternative minimum tax
exemption amount.
Sec. 202. Temporary extension of alternative minimum tax relief for
nonrefundable personal credits.
TITLE III--TEMPORARY ESTATE TAX RELIEF
Sec. 301. Reinstatement of estate tax; repeal of carryover basis.
Sec. 302. Modifications to estate, gift, and generation-skipping
transfer taxes.
Sec. 303. Applicable exclusion amount increased by unused exclusion
amount of deceased spouse.
Sec. 304. Application of EGTRRA sunset to this title.
TITLE IV--TEMPORARY EXTENSION OF INVESTMENT INCENTIVES
Sec. 401. Extension of bonus depreciation; temporary 100 percent
expensing for certain business assets.
Sec. 402. Temporary extension of increased small business expensing.
TITLE V--TEMPORARY EXTENSION OF UNEMPLOYMENT INSURANCE AND RELATED
MATTERS
Sec. 501. Temporary extension of unemployment insurance provisions.
Sec. 502. Temporary modification of indicators under the extended
benefit program.
Sec. 503. Technical amendment relating to collection of unemployment
compensation debts.
[[Page 124 STAT. 3297]]
Sec. 504. Technical correction relating to repeal of continued dumping
and subsidy offset.
Sec. 505. Additional extended unemployment benefits under the Railroad
Unemployment Insurance Act.
TITLE VI--TEMPORARY EMPLOYEE PAYROLL TAX CUT
Sec. 601. Temporary employee payroll tax cut.
TITLE VII--TEMPORARY EXTENSION OF CERTAIN EXPIRING PROVISIONS
Subtitle A--Energy
Sec. 701. Incentives for biodiesel and renewable diesel.
Sec. 702. Credit for refined coal facilities.
Sec. 703. New energy efficient home credit.
Sec. 704. Excise tax credits and outlay payments for alternative fuel
and alternative fuel mixtures.
Sec. 705. Special rule for sales or dispositions to implement FERC or
State electric restructuring policy for qualified electric
utilities.
Sec. 706. Suspension of limitation on percentage depletion for oil and
gas from marginal wells.
Sec. 707. Extension of grants for specified energy property in lieu of
tax credits.
Sec. 708. Extension of provisions related to alcohol used as fuel.
Sec. 709. Energy efficient appliance credit.
Sec. 710. Credit for nonbusiness energy property.
Sec. 711. Alternative fuel vehicle refueling property.
Subtitle B--Individual Tax Relief
Sec. 721. Deduction for certain expenses of elementary and secondary
school teachers.
Sec. 722. Deduction of State and local sales taxes.
Sec. 723. Contributions of capital gain real property made for
conservation purposes.
Sec. 724. Above-the-line deduction for qualified tuition and related
expenses.
Sec. 725. Tax-free distributions from individual retirement plans for
charitable purposes.
Sec. 726. Look-thru of certain regulated investment company stock in
determining gross estate of nonresidents.
Sec. 727. Parity for exclusion from income for employer-provided mass
transit and parking benefits.
Sec. 728. Refunds disregarded in the administration of Federal programs
and federally assisted programs.
Subtitle C--Business Tax Relief
Sec. 731. Research credit.
Sec. 732. Indian employment tax credit.
Sec. 733. New markets tax credit.
Sec. 734. Railroad track maintenance credit.
Sec. 735. Mine rescue team training credit.
Sec. 736. Employer wage credit for employees who are active duty members
of the uniformed services.
Sec. 737. 15-year straight-line cost recovery for qualified leasehold
improvements, qualified restaurant buildings and
improvements, and qualified retail improvements.
Sec. 738. 7-year recovery period for motorsports entertainment
complexes.
Sec. 739. Accelerated depreciation for business property on an Indian
reservation.
Sec. 740. Enhanced charitable deduction for contributions of food
inventory.
Sec. 741. Enhanced charitable deduction for contributions of book
inventories to public schools.
Sec. 742. Enhanced charitable deduction for corporate contributions of
computer inventory for educational purposes.
Sec. 743. Election to expense mine safety equipment.
Sec. 744. Special expensing rules for certain film and television
productions.
Sec. 745. Expensing of environmental remediation costs.
Sec. 746. Deduction allowable with respect to income attributable to
domestic production activities in Puerto Rico.
Sec. 747. Modification of tax treatment of certain payments to
controlling exempt organizations.
Sec. 748. Treatment of certain dividends of regulated investment
companies.
Sec. 749. RIC qualified investment entity treatment under FIRPTA.
Sec. 750. Exceptions for active financing income.
Sec. 751. Look-thru treatment of payments between related controlled
foreign corporations under foreign personal holding company
rules.
[[Page 124 STAT. 3298]]
Sec. 752. Basis adjustment to stock of S corps making charitable
contributions of property.
Sec. 753. Empowerment zone tax incentives.
Sec. 754. Tax incentives for investment in the District of Columbia.
Sec. 755. Temporary increase in limit on cover over of rum excise taxes
to Puerto Rico and the Virgin Islands.
Sec. 756. American Samoa economic development credit.
Sec. 757. Work opportunity credit.
Sec. 758. Qualified zone academy bonds.
Sec. 759. Mortgage insurance premiums.
Sec. 760. Temporary exclusion of 100 percent of gain on certain small
business stock.
Subtitle D--Temporary Disaster Relief Provisions
subpart a--new york liberty zone
Sec. 761. Tax-exempt bond financing.
subpart b--go zone
Sec. 762. Increase in rehabilitation credit.
Sec. 763. Low-income housing credit rules for buildings in GO zones.
Sec. 764. Tax-exempt bond financing.
Sec. 765. Bonus depreciation deduction applicable to the GO Zone.
TITLE VIII--BUDGETARY PROVISIONS
Sec. 801. Determination of budgetary effects.
Sec. 802. Emergency designations.
TITLE I--TEMPORARY EXTENSION OF TAX RELIEF
SEC. 101. TEMPORARY EXTENSION OF 2001 TAX RELIEF.
(a) Temporary Extension.--
(1) In general.--Section 901 of the Economic Growth and Tax
Relief Reconciliation Act of 2001 <<NOTE: 26 USC 1 note.>> is
amended by striking ``December 31, 2010'' both places it appears
and inserting ``December 31, 2012''.
(2) <<NOTE: 26 USC 1 note.>> Effective date.--The amendment
made by this subsection shall take effect as if included in the
enactment of the Economic Growth and Tax Relief Reconciliation
Act of 2001.
(b) Separate Sunset for Expansion of Adoption Benefits Under the
Patient Protection and Affordable Care Act.--
(1) In general.--Subsection (c) of section 10909 of the
Patient Protection and Affordable Care Act <<NOTE: Ante, p.
1023.>> is amended to read as follows:
``(c) Sunset Provision.--Each provision of law amended by this
section is amended to read as such provision would read if this section
had never been enacted. <<NOTE: Applicability.>> The amendments made by
the preceding sentence shall apply to taxable years beginning after
December 31, 2011.''.
(2) Conforming amendment.--Subsection (d) of section 10909
of such Act is <<NOTE: Ante, p. 1024.>> amended by striking
``The amendments'' and inserting ``Except as provided in
subsection (c), the amendments''.
SEC. 102. TEMPORARY EXTENSION OF 2003 TAX RELIEF.
(a) In General.--Section 303 of the Jobs and Growth Tax Relief
Reconciliation Act of 2003 <<NOTE: 26 USC 1 note.>> is amended by
striking ``December 31, 2010'' and inserting ``December 31, 2012''.
[[Page 124 STAT. 3299]]
(b) <<NOTE: 26 USC 1 note.>> Effective Date.--The amendment made by
this section shall take effect as if included in the enactment of the
Jobs and Growth Tax Relief Reconciliation Act of 2003.
SEC. 103. TEMPORARY EXTENSION OF 2009 TAX RELIEF.
(a) American Opportunity Tax Credit.--
(1) In general.--Section 25A(i) <<NOTE: 26 USC 25A.>> is
amended by striking ``or 2010'' and inserting ``, 2010, 2011, or
2012''.
(2) Treatment of possessions.--Section 1004(c)(1) of the
American Recovery and Reinvestment Tax Act of 2009 <<NOTE: 26
USC 25A note.>> is amended by striking ``and 2010'' each place
it appears and inserting ``, 2010, 2011, and 2012''.
(b) Child Tax Credit.--Section 24(d)(4) is amended--
(1) by striking ``2009 and 2010'' in the heading and
inserting ``2009, 2010, 2011, and 2012'', and
(2) by striking ``or 2010'' and inserting ``, 2010, 2011, or
2012''.
(c) Earned Income Tax Credit.--Section 32(b)(3) is amended--
(1) by striking ``2009 and 2010'' in the heading and
inserting ``2009, 2010, 2011, and 2012'', and
(2) by striking ``or 2010'' and inserting ``, 2010, 2011, or
2012''.
(d) <<NOTE: 26 USC 24 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2010.
TITLE II--TEMPORARY EXTENSION OF INDIVIDUAL AMT RELIEF
SEC. 201. TEMPORARY EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX
EXEMPTION AMOUNT.
(a) In General.--Paragraph (1) of section 55(d) is amended--
(1) by striking ``$70,950'' and all that follows through
``2009'' in subparagraph (A) and inserting ``$72,450 in the case
of taxable years beginning in 2010 and $74,450 in the case of
taxable years beginning in 2011'', and
(2) by striking ``$46,700'' and all that follows through
``2009'' in subparagraph (B) and inserting ``$47,450 in the case
of taxable years beginning in 2010 and $48,450 in the case of
taxable years beginning in 2011''.
(b) <<NOTE: 26 USC 55 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2009.
(c) <<NOTE: 26 USC 1 note.>> Repeal of EGTRRA Sunset.--Title IX of
the Economic Growth and Tax Relief Reconciliation Act of 2001 (relating
to sunset of provisions of such Act) shall not apply to title VII of
such Act (relating to alternative minimum tax).
SEC. 202. TEMPORARY EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF
FOR NONREFUNDABLE PERSONAL CREDITS.
(a) In General.--Paragraph (2) of section 26(a) is amended--
(1) by striking ``or 2009'' and inserting ``2009, 2010, or
2011'', and
(2) by striking ``2009'' in the heading thereof and
inserting ``2011''.
(b) <<NOTE: 26 USC 26 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2009.
[[Page 124 STAT. 3300]]
TITLE III--TEMPORARY ESTATE TAX RELIEF
SEC. 301. REINSTATEMENT OF ESTATE TAX; REPEAL OF CARRYOVER BASIS.
(a) In General.--Each provision of law amended by subtitle A or E of
title V of the Economic Growth and Tax Relief Reconciliation Act of
2001 <<NOTE: 26 USC 121, 684, 1014, 1022, 1040, 1221, 1246, 1291, 1296,
2210, 2664, 6018, 6019, 6075, 6716, 7701.>> is amended to read as such
provision would read if such subtitle had never been enacted.
(b) <<NOTE: Effective date. 26 USC 2505 note.>> Conforming
Amendment.--On and after January 1, 2011, paragraph (1) of section
2505(a) of the Internal Revenue Code of 1986 <<NOTE: 26 USC 2505.>> is
amended to read as such paragraph would read if section 521(b)(2) of the
Economic Growth and Tax Relief Reconciliation Act of 2001 had never been
enacted.
(c) Special Election With Respect to Estates of Decedents Dying in
2010. <<NOTE: Time period. 26 USC 2001 note.>> --Notwithstanding
subsection (a), in the case of an estate of a decedent dying after
December 31, 2009, and before January 1, 2011, the executor (within the
meaning of section 2203 of the Internal Revenue Code of 1986) may elect
to apply such Code as though the amendments made by subsection (a) do
not apply with respect to chapter 11 of such Code and with respect to
property acquired or passing from such decedent (within the meaning of
section 1014(b) of such Code). Such election shall be made at such time
and in such manner as the Secretary of the Treasury or the Secretary's
delegate shall provide. Such an election once made shall be revocable
only with the consent of the Secretary of the Treasury or the
Secretary's delegate. For purposes of section 2652(a)(1) of such Code,
the determination of whether any property is subject to the tax imposed
by such chapter 11 shall be made without regard to any election made
under this subsection.
(d) Extension of Time for Performing Certain Acts.--
(1) <<NOTE: 26 USC 6075 note.>> Estate tax.--In the case of
the estate of a decedent dying after December 31, 2009, and
before the date of the enactment of this Act, the due date for--
(A) filing any return under section 6018 of the
Internal Revenue Code of 1986 (including any election
required to be made on such a return) as such section is
in effect after the date of the enactment of this Act
without regard to any election under subsection (c),
(B) making any payment of tax under chapter 11 of
such Code, and
(C) making any disclaimer described in section
2518(b) of such Code of an interest in property passing
by reason of the death of such decedent,
shall not be earlier than the date which is 9 months after the
date of the enactment of this Act.
(2) <<NOTE: Deadline. 26 USC 2662 note.>> Generation-
skipping tax.--In the case of any generation-skipping transfer
made after December 31, 2009, and before the date of the
enactment of this Act, the due date for filing any return under
section 2662 of the Internal Revenue Code of 1986 (including any
election required to be made on such a return) shall not be
earlier than the date which is 9 months after the date of the
enactment of this Act.
[[Page 124 STAT. 3301]]
(e) <<NOTE: 26 USC 121 note.>> Effective Date.--Except as otherwise
provided in this section, the amendments made by this section shall
apply to estates of decedents dying, and transfers made, after December
31, 2009.
SEC. 302. MODIFICATIONS TO ESTATE, GIFT, AND GENERATION-SKIPPING
TRANSFER TAXES.
(a) Modifications to Estate Tax.--
(1) $5,000,000 applicable exclusion amount.--Subsection (c)
of section 2010 <<NOTE: 26 USC 2010.>> is amended to read as
follows:
``(c) Applicable Credit Amount.--
``(1) In general.--For purposes of this section, the
applicable credit amount is the amount of the tentative tax
which would be determined under section 2001(c) if the amount
with respect to which such tentative tax is to be computed were
equal to the applicable exclusion amount.
``(2) Applicable exclusion amount.--
``(A) In general.--For purposes of this subsection,
the applicable exclusion amount is $5,000,000.
``(B) Inflation adjustment.--In the case of any
decedent dying in a calendar year after 2011, the dollar
amount in subparagraph (A) shall be increased by an
amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for such calendar
year by substituting `calendar year 2010' for
`calendar year 1992' in subparagraph (B) thereof.
If any amount as adjusted under the preceding sentence
is not a multiple of $10,000, such amount shall be
rounded to the nearest multiple of $10,000.''.
(2) Maximum estate tax rate equal to 35 percent.--Subsection
(c) of section 2001 is amended--
(A) by striking ``Over $500,000'' and all that
follows in the table contained in paragraph (1) and
inserting the following:
``Over $500,000.............................. $155,800, plus 35 percent of the excess of such amount over
$500,000.'',
(B) by striking ``(1) In general.--'', and
(C) by striking paragraph (2).
(b) Modifications to Gift Tax.--
(1) Restoration of unified credit against gift tax.--
(A) In general.--Paragraph (1) of section 2505(a),
after the application of section 301(b), is amended by
striking ``(determined as if the applicable exclusion
amount were $1,000,000)''.
(B) <<NOTE: 26 USC 2505 note.>> Effective date.--
The amendment made by this paragraph shall apply to
gifts made after December 31, 2010.
(2) <<NOTE: Effective date. 26 USC 2502 note.>>
Modification of gift tax rate.--On and after January 1, 2011,
subsection (a) of section 2502 is amended to read as such
subsection would read if section 511(d) of the Economic Growth
and Tax Relief Reconciliation Act of 2001 had never been
enacted.
[[Page 124 STAT. 3302]]
(c) <<NOTE: Time period. 26 USC 2641 note.>> Modification of
Generation-skipping Transfer Tax.--In the case of any generation-
skipping transfer made after December 31, 2009, and before January 1,
2011, the applicable rate determined under section 2641(a) of the
Internal Revenue Code of 1986 shall be zero.
(d) Modifications of Estate and Gift Taxes to Reflect Differences in
Credit Resulting From Different Tax Rates.--
(1) Estate tax.--
(A) In general.--Section 2001(b)(2) <<NOTE: 26 USC
2001.>> is amended by striking ``if the provisions of
subsection (c) (as in effect at the decedent's death)''
and inserting ``if the modifications described in
subsection (g)''.
(B) Modifications.--Section 2001 is amended by
adding at the end the following new subsection:
``(g) Modifications to Gift Tax Payable to Reflect Different Tax
Rates. <<NOTE: Applicability.>> --For purposes of applying subsection
(b)(2) with respect to 1 or more gifts, the rates of tax under
subsection (c) in effect at the decedent's death shall, in lieu of the
rates of tax in effect at the time of such gifts, be used both to
compute--
``(1) the tax imposed by chapter 12 with respect to such
gifts, and
``(2) the credit allowed against such tax under section
2505, including in computing--
``(A) the applicable credit amount under section
2505(a)(1), and
``(B) the sum of the amounts allowed as a credit for
all preceding periods under section 2505(a)(2).''.
(2) Gift tax.--Section 2505(a) is amended by adding at the
end the following new flush sentence:
``For <<NOTE: Applicability.>> purposes of applying paragraph (2) for
any calendar year, the rates of tax in effect under section 2502(a)(2)
for such calendar year shall, in lieu of the rates of tax in effect for
preceding calendar periods, be used in determining the amounts allowable
as a credit under this section for all preceding calendar periods.''.
(e) Conforming Amendment.--Section 2511 is amended by striking
subsection (c).
(f) <<NOTE: 26 USC 2001 note.>> Effective Date.--Except as
otherwise provided in this subsection, the amendments made by this
section shall apply to estates of decedents dying, generation-skipping
transfers, and gifts made, after December 31, 2009.
SEC. 303. APPLICABLE EXCLUSION AMOUNT INCREASED BY UNUSED
EXCLUSION AMOUNT OF DECEASED SPOUSE.
(a) In General.--Section 2010(c), as amended by section 302(a), is
amended by striking paragraph (2) and inserting the following new
paragraphs:
``(2) Applicable exclusion amount.--For purposes of this
subsection, the applicable exclusion amount is the sum of--
``(A) the basic exclusion amount, and
``(B) in the case of a surviving spouse, the
deceased spousal unused exclusion amount.
``(3) Basic exclusion amount.--
``(A) In general.--For purposes of this subsection,
the basic exclusion amount is $5,000,000.
``(B) Inflation adjustment.--In the case of any
decedent dying in a calendar year after 2011, the dollar
[[Page 124 STAT. 3303]]
amount in subparagraph (A) shall be increased by an
amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for such calendar
year by substituting `calendar year 2010' for
`calendar year 1992' in subparagraph (B) thereof.
If any amount as adjusted under the preceding sentence
is not a multiple of $10,000, such amount shall be
rounded to the nearest multiple of $10,000.
``(4) Deceased spousal unused exclusion amount.--For
purposes of this subsection, with respect to a surviving spouse
of a deceased spouse dying after December 31, 2010, the term
`deceased spousal unused exclusion amount' means the lesser of--
``(A) the basic exclusion amount, or
``(B) the excess of--
``(i) the basic exclusion amount of the last
such deceased spouse of such surviving spouse,
over
``(ii) the amount with respect to which the
tentative tax is determined under section
2001(b)(1) on the estate of such deceased spouse.
``(5) Special rules.--
``(A) Election required.--A deceased spousal unused
exclusion amount may not be taken into account by a
surviving spouse under paragraph (2) unless the executor
of the estate of the deceased spouse files an estate tax
return on which such amount is computed and makes an
election on such return that such amount may be so taken
into account. Such election, once made, shall be
irrevocable. No election may be made under this
subparagraph if such return is filed after the time
prescribed by law (including extensions) for filing such
return.
``(B) Examination of prior returns after expiration
of period of limitations with respect to deceased
spousal unused exclusion amount.--Notwithstanding any
period of limitation in section 6501, after the time has
expired under section 6501 within which a tax may be
assessed under chapter 11 or 12 with respect to a
deceased spousal unused exclusion amount, the Secretary
may examine a return of the deceased spouse to make
determinations with respect to such amount for purposes
of carrying out this subsection.
``(6) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out this
subsection.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 2505(a), as amended by section
302(b)(1), <<NOTE: 26 USC 2505.>> is amended to read as
follows:
``(1) the applicable credit amount in effect under section
2010(c) which would apply if the donor died as of the end of the
calendar year, reduced by''.
(2) Section 2631(c) is amended by striking ``the applicable
exclusion amount'' and inserting ``the basic exclusion amount''.
(3) Section 6018(a)(1) is amended by striking ``applicable
exclusion amount'' and inserting ``basic exclusion amount''.
(c) <<NOTE: Applicability. 26 USC 2010 note.>> Effective Dates.--
[[Page 124 STAT. 3304]]
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to estates of
decedents dying and gifts made after December 31, 2010.
(2) Conforming amendment relating to generation-skipping
transfers.--The amendment made by subsection (b)(2) shall apply
to generation-skipping transfers after December 31, 2010.
SEC. 304. <<NOTE: 26 USC 121 note.>> APPLICATION OF EGTRRA SUNSET
TO THIS TITLE.
Section 901 of the Economic Growth and Tax Relief Reconciliation Act
of 2001 shall apply to the amendments made by this title.
TITLE IV--TEMPORARY EXTENSION OF INVESTMENT INCENTIVES
SEC. 401. EXTENSION OF BONUS DEPRECIATION; TEMPORARY 100 PERCENT
EXPENSING FOR CERTAIN BUSINESS ASSETS.
(a) In General.--Paragraph (2) of section 168(k) <<NOTE: 26 USC
168.>> is amended--
(1) by striking ``January 1, 2012'' in subparagraph (A)(iv)
and inserting ``January 1, 2014'', and
(2) by striking ``January 1, 2011'' each place it appears
and inserting ``January 1, 2013''.
(b) Temporary 100 Percent Expensing.--Subsection (k) of section 168
is amended by adding at the end the following new paragraph:
``(5) Special rule for property acquired during certain pre-
2012 periods. <<NOTE: Applicability.>> --In the case of
qualified property acquired by the taxpayer (under rules similar
to the rules of clauses (ii) and (iii) of paragraph (2)(A))
after September 8, 2010, and before January 1, 2012, and which
is placed in service by the taxpayer before January 1, 2012
(January 1, 2013, in the case of property described in
subparagraph (2)(B) or (2)(C)), paragraph (1)(A) shall be
applied by substituting `100 percent' for `50 percent'.''.
(c) Extension of Election To Accelerate the AMT Credit in Lieu of
Bonus Depreciation.--
(1) <<NOTE: Time periods.>> Extension.--Clause (iii) of
section 168(k)(4)(D) is amended by striking ``or production''
and all that follows and inserting ``or production--
``(I) after March 31, 2008, and
before January 1, 2010, and
``(II) after December 31, 2010, and
before January 1, 2013,
shall be taken into account under subparagraph
(B)(ii) thereof,''.
(2) Rules for round 2 extension property.--Paragraph (4) of
section 168(k) is amended by adding at the end the following new
subparagraph:
``(I) Special rules for round 2 extension
property.--
``(i) <<NOTE: Applicability.>> In general.--
In the case of round 2 extension property, this
paragraph shall be applied without regard to--
``(I) the limitation described in
subparagraph (B)(i) thereof, and
[[Page 124 STAT. 3305]]
``(II) the business credit increase
amount under subparagraph (E)(iii)
thereof.
``(ii) Taxpayers previously electing
acceleration.--In the case of a taxpayer who made
the election under subparagraph (A) for its first
taxable year ending after March 31, 2008, or a
taxpayer who made the election under subparagraph
(H)(ii) for its first taxable year ending after
December 31, 2008--
``(I) the taxpayer may elect not to
have this paragraph apply to round 2
extension property, but
``(II) if the taxpayer does not make
the election under subclause (I), in
applying this paragraph to the taxpayer
the bonus depreciation amount, maximum
amount, and maximum increase amount
shall be computed and applied to
eligible qualified property which is
round 2 extension property.
The amounts described in subclause (II) shall be
computed separately from any amounts computed with
respect to eligible qualified property which is
not round 2 extension property.
``(iii) Taxpayers not previously electing
acceleration.--In the case of a taxpayer who
neither made the election under subparagraph (A)
for its first taxable year ending after March 31,
2008, nor made the election under subparagraph
(H)(ii) for its first taxable year ending after
December 31, 2008--
``(I) the taxpayer may elect to have
this paragraph apply to its first
taxable year ending after December 31,
2010, and each subsequent taxable year,
and
``(II) if the taxpayer makes the
election under subclause (I), this
paragraph shall only apply to eligible
qualified property which is round 2
extension property.
``(iv) Round 2 extension property.--For
purposes of this subparagraph, the term `round 2
extension property' means property which is
eligible qualified property solely by reason of
the extension of the application of the special
allowance under paragraph (1) pursuant to the
amendments made by section 401(a) of the Tax
Relief, Unemployment Insurance Reauthorization,
and Job Creation Act of 2010 (and the application
of such extension to this paragraph pursuant to
the amendment made by section 401(c)(1) of such
Act).''.
(d) Conforming Amendments.--
(1) The heading for subsection (k) of section 168 <<NOTE: 26
USC 168.>> is amended by striking ``January 1, 2011'' and
inserting ``January 1, 2013''.
(2) The heading for clause (ii) of section 168(k)(2)(B) is
amended by striking ``pre-january 1, 2011'' and inserting ``pre-
january 1, 2013''.
(3) Subparagraph (D) of section 168(k)(4) is amended--
(A) by striking clauses (iv) and (v),
(B) by inserting ``and'' at the end of clause (ii),
and
(C) by striking the comma at the end of clause (iii)
and inserting a period.
(4) Paragraph (5) of section 168(l) is amended--
[[Page 124 STAT. 3306]]
(A) by inserting ``and'' at the end of subparagraph
(A),
(B) by striking subparagraph (B), and
(C) by redesignating subparagraph (C) as
subparagraph (B).
(5) Subparagraph (C) of section 168(n)(2) <<NOTE: 26 USC
168.>> is amended by striking ``January 1, 2011'' and inserting
``January 1, 2013''.
(6) Subparagraph (D) of section 1400L(b)(2) is amended by
striking ``January 1, 2011'' and inserting ``January 1, 2013''.
(7) Subparagraph (B) of section 1400N(d)(3) is amended by
striking ``January 1, 2011'' and inserting ``January 1, 2013''.
(e) <<NOTE: Applicability. 26 USC 168 note.>> Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to property placed
in service after December 31, 2010, in taxable years ending
after such date.
(2) Temporary 100 percent expensing.--The amendment made by
subsection (b) shall apply to property placed in service after
September 8, 2010, in taxable years ending after such date.
SEC. 402. TEMPORARY EXTENSION OF INCREASED SMALL BUSINESS
EXPENSING.
(a) Dollar Limitation.--Section 179(b)(1) is amended by striking
``and'' at the end of subparagraph (B) and by striking subparagraph (C)
and inserting the following new subparagraphs:
``(C) $125,000 in the case of taxable years
beginning in 2012, and
``(D) $25,000 in the case of taxable years beginning
after 2012.''.
(b) Reduction in Limitation.--Section 179(b)(2) is amended by
striking ``and'' at the end of subparagraph (B) and by striking
subparagraph (C) and inserting the following new subparagraphs:
``(C) $500,000 in the case of taxable years
beginning in 2012, and
``(D) $200,000 in the case of taxable years
beginning after 2012.''.
(c) Inflation Adjustment.--Subsection (b) of section 179 is amended
by adding at the end the following new paragraph:
``(6) Inflation adjustment.--
``(A) In general.--In the case of any taxable year
beginning in calendar year 2012, the $125,000 and
$500,000 amounts in paragraphs (1)(C) and (2)(C) shall
each be increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the calendar
year in which the taxable year begins, by
substituting `calendar year 2006' for `calendar
year 1992' in subparagraph (B) thereof.
``(B) Rounding.--
``(i) Dollar limitation.--If the amount in
paragraph (1) as increased under subparagraph (A)
is not a multiple of $1,000, such amount shall be
rounded to the nearest multiple of $1,000.
``(ii) Phaseout amount.--If the amount in
paragraph (2) as increased under subparagraph (A)
is not
[[Page 124 STAT. 3307]]
a multiple of $10,000, such amount shall be
rounded to the nearest multiple of $10,000.''.
(d) Computer Software.--Section 179(d)(1)(A)(ii) <<NOTE: 26 USC
179.>> is amended by striking ``2012'' and inserting ``2013''.
(e) Conforming Amendment.--Section 179(c)(2) is amended by striking
``2012'' and inserting ``2013''.
(f) <<NOTE: 26 USC 179 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2011.
TITLE V--TEMPORARY EXTENSION OF UNEMPLOYMENT INSURANCE AND RELATED
MATTERS
SEC. 501. TEMPORARY EXTENSION OF UNEMPLOYMENT INSURANCE
PROVISIONS.
(a) In General.--(1) Section 4007 of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
(A) by striking ``November 30, 2010'' each place it appears
and inserting ``January 3, 2012'';
(B) in the heading for subsection (b)(2), by striking
``november 30, 2010'' and inserting ``january 3, 2012''; and
(C) in subsection (b)(3), by striking ``April 30, 2011'' and
inserting ``June 9, 2012''.
(2) Section 2005 of the Assistance for Unemployed Workers and
Struggling Families Act, as contained in Public Law 111-5 (26 U.S.C.
3304 note; 123 Stat. 444), is amended--
(A) by striking ``December 1, 2010'' each place it appears
and inserting ``January 4, 2012''; and
(B) in subsection (c), by striking ``May 1, 2011'' and
inserting ``June 11, 2012''.
(3) Section 5 of the Unemployment Compensation Extension Act of 2008
(Public Law 110-449; 26 U.S.C. 3304 note) is amended by striking ``April
30, 2011'' and inserting ``June 10, 2012''.
(b) Funding.--Section 4004(e)(1) of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
(1) in subparagraph (E), by striking ``and'' at the end; and
(2) by inserting after subparagraph (F) the following:
``(G) the amendments made by section 501(a)(1) of
the Tax Relief, Unemployment Insurance Reauthorization,
and Job Creation Act of 2010; and''.
(c) <<NOTE: 26 USC 3304 note.>> Effective Date.--The amendments
made by this section shall take effect as if included in the enactment
of the Unemployment Compensation Extension Act of 2010 (Public Law 111-
205).
SEC. 502. <<NOTE: 26 USC 3304.>> TEMPORARY MODIFICATION OF
INDICATORS UNDER THE EXTENDED BENEFIT
PROGRAM.
(a) Indicator.--Section 203(d) of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is amended,
in the flush matter following paragraph (2), by inserting after the
first sentence the following sentence: <<NOTE: Effective date.>>
``Effective with respect to compensation for weeks of unemployment
beginning after the date of enactment of the Tax Relief, Unemployment
Insurance
[[Page 124 STAT. 3308]]
Reauthorization, and Job Creation Act of 2010 (or, if later, the date
established pursuant to State law), and ending on or before December 31,
2011, the State may by law provide that the determination of whether
there has been a state `on' or `off' indicator beginning or ending any
extended benefit period shall be made under this subsection as if the
word `two' were `three' in subparagraph (1)(A).''.
(b) Alternative Trigger.--Section 203(f) of the Federal-State
Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is
amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by inserting after paragraph (1) the following new
paragraph:
``(2) <<NOTE: Effective date.>> Effective with respect to
compensation for weeks of unemployment beginning after the date of
enactment of the Tax Relief, Unemployment Insurance Reauthorization, and
Job Creation Act of 2010 (or, if later, the date established pursuant to
State law), and ending on or before December 31, 2011, the State may by
law provide that the determination of whether there has been a state
`on' or `off' indicator beginning or ending any extended benefit period
shall be made under this subsection as if the word `either' were `any',
the word `both' were `all', and the figure `2' were `3' in clause
(1)(A)(ii).''.
SEC. 503. TECHNICAL AMENDMENT RELATING TO COLLECTION OF
UNEMPLOYMENT COMPENSATION DEBTS.
(a) In General.--Section 6402(f)(3)(C), as amended by section 801 of
the Claims Resolution Act of 2010, <<NOTE: 26 USC 6402.>> is amended by
striking ``is not a covered unemployment compensation debt'' and
inserting ``is a covered unemployment compensation debt''.
(b) <<NOTE: 26 USC 6402 note.>> Effective Date.--The amendment made
by subsection (a) shall take effect as if included in section 801 of the
Claims Resolution Act of 2010.
SEC. 504. TECHNICAL CORRECTION RELATING TO REPEAL OF CONTINUED
DUMPING AND SUBSIDY OFFSET.
(a) In General.--Section 822(2)(A) of the Claims Resolution Act of
2010 <<NOTE: Ante, p. 3163.>> is amended by striking ``or'' and
inserting ``and''.
(b) <<NOTE: 19 USC 1675c note.>> Effective Date.--The amendment
made by subsection (a) shall take effect as if included in the
provisions of the Claims Resolution Act of 2010.
SEC. 505. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE
RAILROAD UNEMPLOYMENT INSURANCE ACT.
(a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad Unemployment
Insurance Act, as added by section 2006 of the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5) and as amended by section 9
of the Worker, Homeownership, and Business Assistance Act of 2009
(Public Law 111-92), <<NOTE: Ante, p. 2988.>> is amended--
(1) by striking ``June 30, 2010'' and inserting ``June 30,
2011''; and
(2) by striking ``December 31, 2010'' and inserting
``December 31, 2011''.
(b) Clarification on Authority To Use Funds.--Funds appropriated
under either the first or second sentence of clause (iv) of section
2(c)(2)(D) of the Railroad Unemployment Insurance Act shall be available
to cover the cost of additional extended
[[Page 124 STAT. 3309]]
unemployment benefits provided under such section 2(c)(2)(D) by reason
of the amendments made by subsection (a) as well as to cover the cost of
such benefits provided under such section 2(c)(2)(D), as in effect on
the day before the date of the enactment of this Act.
TITLE VI--TEMPORARY EMPLOYEE PAYROLL TAX CUT
SEC. 601. <<NOTE: 26 USC 1401 note.>> TEMPORARY EMPLOYEE PAYROLL
TAX CUT.
(a) In General.--Notwithstanding any other provision of law--
(1) with respect to any taxable year which begins in the
payroll tax holiday period, the rate of tax under section
1401(a) of the Internal Revenue Code of 1986 shall be 10.40
percent, and
(2) with respect to remuneration received during the payroll
tax holiday period, the rate of tax under 3101(a) of such Code
shall be 4.2 percent (including for purposes of determining the
applicable percentage under sections 3201(a) and 3211(a)(1) of
such Code).
(b) Coordination With Deductions for Employment Taxes.--
(1) Deduction in computing net earnings from self-
employment.--For purposes of applying section 1402(a)(12) of the
Internal Revenue Code of 1986, the rate of tax imposed by
subsection 1401(a) of such Code shall be determined without
regard to the reduction in such rate under this section.
(2) Individual deduction.--In the case of the taxes imposed
by section 1401 of such Code for any taxable year which begins
in the payroll tax holiday period, the deduction under section
164(f) with respect to such taxes shall be equal to the sum of--
(A) 59.6 percent of the portion of such taxes
attributable to the tax imposed by section 1401(a)
(determined after the application of this section), plus
(B) one-half of the portion of such taxes
attributable to the tax imposed by section 1401(b).
(c) <<NOTE: Definition.>> Payroll Tax Holiday Period.--The term
``payroll tax holiday period'' means calendar year 2011.
(d) Employer Notification.--The Secretary of the Treasury shall
notify employers of the payroll tax holiday period in any manner the
Secretary deems appropriate.
(e) Transfers of Funds.--
(1) Transfers to federal old-age and survivors insurance
trust fund.--There are hereby appropriated to the Federal Old-
Age and Survivors Trust Fund and the Federal Disability
Insurance Trust Fund established under section 201 of the Social
Security Act (42 U.S.C. 401) amounts equal to the reduction in
revenues to the Treasury by reason of the application of
subsection (a). Amounts appropriated by the preceding sentence
shall be transferred from the general fund at such times and in
such manner as to replicate to the extent possible the transfers
which would have occurred to such Trust Fund had such amendments
not been enacted.
(2) Transfers to social security equivalent benefit
account. <<NOTE: Appropriation.>> --There are hereby
appropriated to the Social Security
[[Page 124 STAT. 3310]]
Equivalent Benefit Account established under section 15A(a) of
the Railroad Retirement Act of 1974 (45 U.S.C. 231n-1(a))
amounts equal to the reduction in revenues to the Treasury by
reason of the application of subsection (a)(2). Amounts
appropriated by the preceding sentence shall be transferred from
the general fund at such times and in such manner as to
replicate to the extent possible the transfers which would have
occurred to such Account had such amendments not been enacted.
(3) <<NOTE: Applicability.>> Coordination with other
federal laws.--For purposes of applying any provision of Federal
law other than the provisions of the Internal Revenue Code of
1986, the rate of tax in effect under section 3101(a) of such
Code shall be determined without regard to the reduction in such
rate under this section.
TITLE VII--TEMPORARY EXTENSION OF CERTAIN EXPIRING PROVISIONS
Subtitle A--Energy
SEC. 701. INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.
(a) Credits for Biodiesel and Renewable Diesel Used as Fuel.--
Subsection (g) of section 40A <<NOTE: 26 USC 40A.>> is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
(b) Excise Tax Credits and Outlay Payments for Biodiesel and
Renewable Diesel Fuel Mixtures.--
(1) Paragraph (6) of section 6426(c) is amended by striking
``December 31, 2009'' and inserting ``December 31, 2011''.
(2) Subparagraph (B) of section 6427(e)(6) is amended by
striking ``December 31, 2009'' and inserting ``December 31,
2011''.
(c) <<NOTE: Claims. Deadline. 26 USC 6426 note.>> Special Rule for
2010.--Notwithstanding any other provision of law, in the case of any
biodiesel mixture credit properly determined under section 6426(c) of
the Internal Revenue Code of 1986 for periods during 2010, such credit
shall be allowed, and any refund or payment attributable to such credit
(including any payment under section 6427(e) of such Code) shall be
made, only in such manner as the Secretary of the Treasury (or the
Secretary's delegate) shall provide. <<NOTE: Guidance.>> Such Secretary
shall issue guidance within 30 days after the date of the enactment of
this Act providing for a one-time submission of claims covering periods
during 2010. <<NOTE: Time period.>> Such guidance shall provide for a
180-day period for the submission of such claims (in such manner as
prescribed by such Secretary) to begin not later than 30 days after such
guidance is issued. Such claims shall be paid by such Secretary not
later than 60 days after receipt. If such Secretary has not paid
pursuant to a claim filed under this subsection within 60 days after the
date of the filing of such claim, the claim shall be paid with interest
from such date determined by using the overpayment rate and method under
section 6621 of such Code.
(d) <<NOTE: 26 USC 40A note.>> Effective Date.--The amendments made
by this section shall apply to fuel sold or used after December 31,
2009.
[[Page 124 STAT. 3311]]
SEC. 702. CREDIT FOR REFINED COAL FACILITIES.
(a) In General.--Subparagraph (B) of section 45(d)(8) <<NOTE: 26 USC
45.>> is amended by striking ``January 1, 2010'' and inserting
``January 1, 2012''.
(b) <<NOTE: 26 USC 45 note.>> Effective Date.--The amendment made
by this section shall apply to facilities placed in service after
December 31, 2009.
SEC. 703. NEW ENERGY EFFICIENT HOME CREDIT.
(a) In General.--Subsection (g) of section 45L is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
(b) <<NOTE: 26 USC 45L note.>> Effective Date.--The amendment made
by this section shall apply to homes acquired after December 31, 2009.
SEC. 704. EXCISE TAX CREDITS AND OUTLAY PAYMENTS FOR ALTERNATIVE
FUEL AND ALTERNATIVE FUEL MIXTURES.
(a) In General.--Sections 6426(d)(5), 6426(e)(3), and 6427(e)(6)(C)
are each amended by striking ``December 31, 2009'' and inserting
``December 31, 2011''.
(b) Exclusion of Black Liquor From Credit Eligibility.--The last
sentence of section 6426(d)(2) is amended by striking ``or biodiesel''
and inserting ``biodiesel, or any fuel (including lignin, wood residues,
or spent pulping liquors) derived from the production of paper or
pulp''.
(c) <<NOTE: Claims. Deadline. 26 USC 6426 note.>> Special Rule for
2010.--Notwithstanding any other provision of law, in the case of any
alternative fuel credit or any alternative fuel mixture credit properly
determined under subsection (d) or (e) of section 6426 of the Internal
Revenue Code of 1986 for periods during 2010, such credit shall be
allowed, and any refund or payment attributable to such credit
(including any payment under section 6427(e) of such Code) shall be
made, only in such manner as the Secretary of the Treasury (or the
Secretary's delegate) shall provide. <<NOTE: Guidance.>> Such Secretary
shall issue guidance within 30 days after the date of the enactment of
this Act providing for a one-time submission of claims covering periods
during 2010. Such <<NOTE: Time period.>> guidance shall provide for a
180-day period for the submission of such claims (in such manner as
prescribed by such Secretary) to begin not later than 30 days after such
guidance is issued. Such claims shall be paid by such Secretary not
later than 60 days after receipt. If such Secretary has not paid
pursuant to a claim filed under this subsection within 60 days after the
date of the filing of such claim, the claim shall be paid with interest
from such date determined by using the overpayment rate and method under
section 6621 of such Code.
(d) <<NOTE: 26 USC 6426 note.>> Effective Date.--The amendments
made by this section shall apply to fuel sold or used after December 31,
2009.
SEC. 705. SPECIAL RULE FOR SALES OR DISPOSITIONS TO IMPLEMENT FERC
OR STATE ELECTRIC RESTRUCTURING POLICY FOR
QUALIFIED ELECTRIC UTILITIES.
(a) In General.--Paragraph (3) of section 451(i) is amended by
striking ``January 1, 2010'' and inserting ``January 1, 2012''.
(b) <<NOTE: 26 USC 451 note.>> Effective Date.--The amendment made
by this section shall apply to dispositions after December 31, 2009.
SEC. 706. SUSPENSION OF LIMITATION ON PERCENTAGE DEPLETION FOR OIL
AND GAS FROM MARGINAL WELLS.
(a) In General.--Clause (ii) of section 613A(c)(6)(H) is amended by
striking ``January 1, 2010'' and inserting ``January 1, 2012''.
[[Page 124 STAT. 3312]]
(b) <<NOTE: 26 USC 613A note.>> Effective Date.--The amendment made
by this section shall apply to taxable years beginning after December
31, 2009.
SEC. 707. EXTENSION OF GRANTS FOR SPECIFIED ENERGY PROPERTY IN
LIEU OF TAX CREDITS.
(a) In General.--Subsection (a) of section 1603 of division B of the
American Recovery and Reinvestment Act of 2009 <<NOTE: 26 USC 48
note.>> is amended--
(1) in paragraph (1), by striking ``2009 or 2010'' and
inserting ``2009, 2010, or 2011'', and
(2) in paragraph (2)--
(A) by striking ``after 2010'' and inserting ``after
2011'', and
(B) by striking ``2009 or 2010'' and inserting
``2009, 2010, or 2011''.
(b) Conforming Amendment.--Subsection (j) of section 1603 of
division B of such Act is amended by striking ``2011'' and inserting
``2012''.
SEC. 708. EXTENSION OF PROVISIONS RELATED TO ALCOHOL USED AS FUEL.
(a) Extension of Income Tax Credit for Alcohol Used as Fuel.--
(1) In general.--Paragraph (1) of section 40(e) is amended--
(A) by striking ``December 31, 2010'' in
subparagraph (A) and inserting ``December 31, 2011'',
and
(B) by striking ``January 1, 2011'' in subparagraph
(B) and inserting ``January 1, 2012''.
(2) Reduced amount for ethanol blenders.--Subsection (h) of
section 40 is amended by striking ``2010'' both places it
appears and inserting ``2011''.
(3) <<NOTE: 26 USC 40 note.>> Effective date.--The
amendments made by this subsection shall apply to periods after
December 31, 2010.
(b) Extension of Excise Tax Credit for Alcohol Used as Fuel.--
(1) In general.--Paragraph (6) of section 6426(b) is amended
by striking ``December 31, 2010'' and inserting ``December 31,
2011''.
(2) <<NOTE: 26 USC 6426 note.>> Effective date.--The
amendment made by this subsection shall apply to periods after
December 31, 2010.
(c) Extension of Payment for Alcohol Fuel Mixture.--
(1) In general.--Subparagraph (A) of section 6427(e)(6) is
amended by striking ``December 31, 2010'' and inserting
``December 31, 2011''.
(2) <<NOTE: 26 USC 6427 note.>> Effective date.--The
amendment made by this subsection shall apply to sales and uses
after December 31, 2010.
(d) Extension of Additional Duties on Ethanol.--
(1) In general.--Headings 9901.00.50 and 9901.00.52 of the
Harmonized Tariff Schedule of the United States are each amended
in the effective period column by striking ``1/1/2011'' and
inserting ``1/1/2012''.
(2) Effective date.--The amendments made by this subsection
shall take effect on January 1, 2011.
SEC. 709. ENERGY EFFICIENT APPLIANCE CREDIT.
(a) Dishwashers.--Paragraph (1) of section 45M(b) is amended by
striking ``and'' at the end of subparagraph (A), by striking the
[[Page 124 STAT. 3313]]
period at the end of subparagraph (B) and inserting a comma, and by
adding at the end the following new subparagraphs:
``(C) $25 in the case of a dishwasher which is
manufactured in calendar year 2011 and which uses no
more than 307 kilowatt hours per year and 5.0 gallons
per cycle (5.5 gallons per cycle for dishwashers
designed for greater than 12 place settings),
``(D) $50 in the case of a dishwasher which is
manufactured in calendar year 2011 and which uses no
more than 295 kilowatt hours per year and 4.25 gallons
per cycle (4.75 gallons per cycle for dishwashers
designed for greater than 12 place settings), and
``(E) $75 in the case of a dishwasher which is
manufactured in calendar year 2011 and which uses no
more than 280 kilowatt hours per year and 4 gallons per
cycle (4.5 gallons per cycle for dishwashers designed
for greater than 12 place settings).''.
(b) Clothes Washers.--Paragraph (2) of section 45M(b) <<NOTE: 26 USC
45M.>> is amended by striking ``and'' at the end of subparagraph (C),
by striking the period at the end of subparagraph (D) and inserting a
comma, and by adding at the end the following new subparagraphs:
``(E) $175 in the case of a top-loading clothes
washer manufactured in calendar year 2011 which meets or
exceeds a 2.2 modified energy factor and does not exceed
a 4.5 water consumption factor, and
``(F) $225 in the case of a clothes washer
manufactured in calendar year 2011--
``(i) which is a top-loading clothes washer
and which meets or exceeds a 2.4 modified energy
factor and does not exceed a 4.2 water consumption
factor, or
``(ii) which is a front-loading clothes washer
and which meets or exceeds a 2.8 modified energy
factor and does not exceed a 3.5 water consumption
factor.''.
(c) Refrigerators.--Paragraph (3) of section 45M(b) is amended by
striking ``and'' at the end of subparagraph (C), by striking the period
at the end of subparagraph (D) and inserting a comma, and by adding at
the end the following new subparagraphs:
``(E) $150 in the case of a refrigerator
manufactured in calendar year 2011 which consumes at
least 30 percent less energy than the 2001 energy
conservation standards, and
``(F) $200 in the case of a refrigerator
manufactured in calendar year 2011 which consumes at
least 35 percent less energy than the 2001 energy
conservation standards.''.
(d) Rebasing of Limitations.--
(1) In general.--Paragraph (1) of section 45M(e) is
amended--
(A) by striking ``$75,000,000'' and inserting
``$25,000,000'', and
(B) by striking ``December 31, 2007'' and inserting
``December 31, 2010''.
(2) Exception for certain refrigerators and clothes
washers.--Paragraph (2) of section 45M(e) is amended--
[[Page 124 STAT. 3314]]
(A) by striking ``subsection (b)(3)(D)'' and
inserting ``subsection (b)(3)(F)'', and
(B) by striking ``subsection (b)(2)(D)'' and
inserting ``subsection (b)(2)(F)''.
(3) Gross receipts limitation.--Paragraph (3) of section
45M(e) <<NOTE: 26 USC 45M.>> is amended by striking ``2
percent'' and inserting ``4 percent''.
(e) <<NOTE: Applicability. 26 USC 45M note.>> Effective Dates.--
(1) In general.--The amendments made by subsections (a),
(b), and (c) shall apply to appliances produced after December
31, 2010.
(2) Limitations.--The amendments made by subsection (d)
shall apply to taxable years beginning after December 31, 2010.
SEC. 710. CREDIT FOR NONBUSINESS ENERGY PROPERTY.
(a) Extension.--Section 25C(g)(2) is amended by striking ``2010''
and inserting ``2011''.
(b) Return to Pre-ARRA Limitations and Standards.--
(1) In general.--Subsections (a) and (b) of section 25C are
amended to read as follows:
``(a) Allowance of Credit.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this chapter for
the taxable year an amount equal to the sum of--
``(1) 10 percent of the amount paid or incurred by the
taxpayer for qualified energy efficiency improvements installed
during such taxable year, and
``(2) the amount of the residential energy property
expenditures paid or incurred by the taxpayer during such
taxable year.
``(b) Limitations.--
``(1) Lifetime limitation.--The credit allowed under this
section with respect to any taxpayer for any taxable year shall
not exceed the excess (if any) of $500 over the aggregate
credits allowed under this section with respect to such taxpayer
for all prior taxable years ending after December 31, 2005.
``(2) Windows.--In the case of amounts paid or incurred for
components described in subsection (c)(2)(B) by any taxpayer for
any taxable year, the credit allowed under this section with
respect to such amounts for such year shall not exceed the
excess (if any) of $200 over the aggregate credits allowed under
this section with respect to such amounts for all prior taxable
years ending after December 31, 2005.
``(3) Limitation on residential energy property
expenditures.--The amount of the credit allowed under this
section by reason of subsection (a)(2) shall not exceed--
``(A) $50 for any advanced main air circulating fan,
``(B) $150 for any qualified natural gas, propane,
or oil furnace or hot water boiler, and
``(C) $300 for any item of energy-efficient building
property.''.
(2) Modification of standards.--
(A) In general.--Paragraph (1) of section 25C(c) is
amended by striking ``2000'' and all that follows
through ``this section'' and inserting ``2009
International Energy Conservation Code, as such Code
(including supplements)
[[Page 124 STAT. 3315]]
is in effect on the date of the enactment of the
American Recovery and Reinvestment Tax Act of 2009''.
(B) Wood stoves.--Subparagraph (E) of section
25C(d)(3) <<NOTE: 26 USC 25C.>> is amended by striking
``, as measured using a lower heating value''.
(C) Oil furnaces and hot water boilers.--
(i) In general.--Paragraph (4) of section
25C(d) is amended to read as follows:
``(4) <<NOTE: Definition.>> Qualified natural gas, propane,
or oil furnace or hot water boiler.--The term `qualified natural
gas, propane, or oil furnace or hot water boiler' means a
natural gas, propane, or oil furnace or hot water boiler which
achieves an annual fuel utilization efficiency rate of not less
than 95.''.
(ii) Conforming amendment.--Clause (ii) of
section 25C(d)(2)(A) is amended to read as
follows:
``(ii) a qualified natural gas, propane, or
oil furnace or hot water boiler, or''.
(D) Exterior windows, doors, and skylights.--
(i) In general.--Subsection (c) of section 25C
is amended by striking paragraph (4).
(ii) Application of energy star standards.--
Paragraph (1) of section 25C(c) is amended by
inserting ``an exterior window, a skylight, an
exterior door,'' after ``in the case of'' in the
matter preceding subparagraph (A).
(E) Insulation.--Subparagraph (A) of section
25C(c)(2) is amended by striking ``and meets the
prescriptive criteria for such material or system
established by the 2009 International Energy
Conservation Code, as such Code (including supplements)
is in effect on the date of the enactment of the
American Recovery and Reinvestment Tax Act of 2009''.
(3) Subsidized energy financing.--Subsection (e) of section
25C is amended by adding at the end the following new paragraph:
``(3) Property financed by subsidized energy financing.--For
purposes of determining the amount of expenditures made by any
individual with respect to any property, there shall not be
taken into account expenditures which are made from subsidized
energy financing (as defined in section 48(a)(4)(C)).''.
(c) <<NOTE: 26 USC 25C note.>> Effective Date.--The amendments made
by this section shall apply to property placed in service after December
31, 2010.
SEC. 711. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY.
(a) Extension of Credit.--Paragraph (2) of section 30C(g) is amended
by striking ``December 31, 2010'' and inserting ``December 31, 2011.''.
(b) <<NOTE: 26 USC 30C note.>> Effective Date.--The amendment made
by this section shall apply to property placed in service after December
31, 2010.
[[Page 124 STAT. 3316]]
Subtitle B--Individual Tax Relief
SEC. 721. DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND
SECONDARY SCHOOL TEACHERS.
(a) In General.--Subparagraph (D) of section 62(a)(2) <<NOTE: 26 USC
62.>> is amended by striking ``or 2009'' and inserting ``2009, 2010, or
2011''.
(b) <<NOTE: 26 USC 62 note.>> Effective Date.--The amendment made
by this section shall apply to taxable years beginning after December
31, 2009.
SEC. 722. DEDUCTION OF STATE AND LOCAL SALES TAXES.
(a) In General.--Subparagraph (I) of section 164(b)(5) is amended by
striking ``January 1, 2010'' and inserting ``January 1, 2012''.
(b) <<NOTE: 26 USC 164 note.>> Effective Date.--The amendment made
by this section shall apply to taxable years beginning after December
31, 2009.
SEC. 723. CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY MADE FOR
CONSERVATION PURPOSES.
(a) In General.--Clause (vi) of section 170(b)(1)(E) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
(b) Contributions by Certain Corporate Farmers and Ranchers.--Clause
(iii) of section 170(b)(2)(B) is amended by striking ``December 31,
2009'' and inserting ``December 31, 2011''.
(c) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendments made
by this section shall apply to contributions made in taxable years
beginning after December 31, 2009.
SEC. 724. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED TUITION AND
RELATED EXPENSES.
(a) In General.--Subsection (e) of section 222 is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
(b) <<NOTE: 26 USC 222 note.>> Effective Date.--The amendment made
by this section shall apply to taxable years beginning after December
31, 2009.
SEC. 725. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT PLANS
FOR CHARITABLE PURPOSES.
(a) In General.--Subparagraph (F) of section 408(d)(8) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
(b) <<NOTE: 26 USC 408 note.>> Effective Date; Special Rule.--
(1) Effective date.--The amendment made by this section
shall apply to distributions made in taxable years beginning
after December 31, 2009.
(2) Special rule.--For purposes of subsections (a)(6),
(b)(3), and (d)(8) of section 408 of the Internal Revenue Code
of 1986, at the election of the taxpayer (at such time and in
such manner as prescribed by the Secretary of the Treasury) any
qualified charitable distribution made after December 31, 2010,
and before February 1, 2011, shall be deemed to have been made
on December 31, 2010.
SEC. 726. LOOK-THRU OF CERTAIN REGULATED INVESTMENT COMPANY STOCK
IN DETERMINING GROSS ESTATE OF
NONRESIDENTS.
(a) In General.--Paragraph (3) of section 2105(d) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
[[Page 124 STAT. 3317]]
(b) <<NOTE: 26 USC 2105 note.>> Effective Date.--The amendment made
by this section shall apply to estates of decedents dying after December
31, 2009.
SEC. 727. PARITY FOR EXCLUSION FROM INCOME FOR EMPLOYER-PROVIDED
MASS TRANSIT AND PARKING BENEFITS.
(a) In General.--Paragraph (2) of section 132(f) <<NOTE: 26 USC
132.>> is amended by striking ``January 1, 2011'' and inserting
``January 1, 2012''.
(b) <<NOTE: 26 USC 132 note.>> Effective Date.--The amendment made
by this section shall apply to months after December 31, 2010.
SEC. 728. REFUNDS DISREGARDED IN THE ADMINISTRATION OF FEDERAL
PROGRAMS AND FEDERALLY ASSISTED PROGRAMS.
(a) In General.--Subchapter A of chapter 65 is amended by adding at
the end the following new section:
``SEC. 6409. <<NOTE: 26 USC 6409.>> REFUNDS DISREGARDED IN THE
ADMINISTRATION OF FEDERAL PROGRAMS AND
FEDERALLY ASSISTED PROGRAMS.
``(a) In General.--Notwithstanding any other provision of law, any
refund (or advance payment with respect to a refundable credit) made to
any individual under this title shall not be taken into account as
income, and shall not be taken into account as resources for a period of
12 months from receipt, for purposes of determining the eligibility of
such individual (or any other individual) for benefits or assistance (or
the amount or extent of benefits or assistance) under any Federal
program or under any State or local program financed in whole or in part
with Federal funds.
``(b) Termination.--Subsection (a) shall not apply to any amount
received after December 31, 2012.''.
(b) Clerical Amendment.--The table of sections for such subchapter
is amended by adding at the end the following new item:
``Sec. 6409. Refunds disregarded in the administration of Federal
programs and federally assisted programs.''.
(c) <<NOTE: 26 USC 6409 note.>> Effective Date.--The amendments
made by this section shall apply to amounts received after December 31,
2009.
Subtitle C--Business Tax Relief
SEC. 731. RESEARCH CREDIT.
(a) In General.--Subparagraph (B) of section 41(h)(1) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
(b) Conforming Amendment.--Subparagraph (D) of section 45C(b)(1) is
amended by striking ``December 31, 2009'' and inserting ``December 31,
2011''.
(c) <<NOTE: 26 USC 41 note.>> Effective Date.--The amendments made
by this section shall apply to amounts paid or incurred after December
31, 2009.
SEC. 732. INDIAN EMPLOYMENT TAX CREDIT.
(a) In General.--Subsection (f) of section 45A is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
(b) <<NOTE: 26 USC 45A note.>> Effective Date.--The amendment made
by this section shall apply to taxable years beginning after December
31, 2009.
SEC. 733. NEW MARKETS TAX CREDIT.
(a) In General.--Paragraph (1) of section 45D(f) is amended--
(1) by striking ``and'' at the end of subparagraph (E),
[[Page 124 STAT. 3318]]
(2) by striking the period at the end of subparagraph (F),
and
(3) by adding at the end the following new subparagraph:
``(G) $3,500,000,000 for 2010 and 2011.''.
(b) Conforming Amendment.--Paragraph (3) of section <<NOTE: 26 USC
45D.>> 45D(f) is amended by striking ``2014'' and inserting ``2016''.
(c) <<NOTE: 26 USC 45D note.>> Effective Date.--The amendments made
by this section shall apply to calendar years beginning after 2009.
SEC. 734. RAILROAD TRACK MAINTENANCE CREDIT.
(a) In General.--Subsection (f) of section 45G is amended by
striking ``January 1, 2010'' and inserting ``January 1, 2012''.
(b) <<NOTE: 26 USC 45G note.>> Effective Date.--The amendment made
by this section shall apply to expenditures paid or incurred in taxable
years beginning after December 31, 2009.
SEC. 735. MINE RESCUE TEAM TRAINING CREDIT.
(a) In General.--Subsection (e) of section 45N is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
(b) <<NOTE: 26 USC 45N note.>> Effective Date.--The amendment made
by this section shall apply to taxable years beginning after December
31, 2009.
SEC. 736. EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE ACTIVE DUTY
MEMBERS OF THE UNIFORMED SERVICES.
(a) In General.--Subsection (f) of section 45P is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
(b) <<NOTE: 26 USC 45P note.>> Effective Date.--The amendment made
by this section shall apply to payments made after December 31, 2009.
SEC. 737. 15-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED
LEASEHOLD IMPROVEMENTS, QUALIFIED
RESTAURANT BUILDINGS AND IMPROVEMENTS, AND
QUALIFIED RETAIL IMPROVEMENTS.
(a) In General.--Clauses (iv), (v), and (ix) of section 168(e)(3)(E)
are each amended by striking ``January 1, 2010'' and inserting ``January
1, 2012''.
(b) Conforming Amendments.--
(1) Clause (i) of section 168(e)(7)(A) is amended by
striking ``if such building is placed in service after December
31, 2008, and before January 1, 2010,''.
(2) Paragraph (8) of section 168(e) is amended by striking
subparagraph (E).
(3) Section 179(f)(2) is amended--
(A) by striking ``(without regard to the dates
specified in subparagraph (A)(i) thereof)'' in
subparagraph (B), and
(B) by striking ``(without regard to subparagraph
(E) thereof)'' in subparagraph (C).
(c) <<NOTE: 26 USC 168 note.>> Effective Date.--The amendments made
by this section shall apply to property placed in service after December
31, 2009.
SEC. 738. 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS ENTERTAINMENT
COMPLEXES.
(a) In General.--Subparagraph (D) of section 168(i)(15) is amended
by striking ``December 31, 2009'' and inserting ``December 31, 2011''.
(b) <<NOTE: 26 USC 168 note.>> Effective Date.--The amendment made
by this section shall apply to property placed in service after December
31, 2009.
[[Page 124 STAT. 3319]]
SEC. 739. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON AN
INDIAN RESERVATION.
(a) In General.--Paragraph (8) of section 168(j) <<NOTE: 26 USC
168.>> is amended by striking ``December 31, 2009'' and inserting
``December 31, 2011''.
(b) <<NOTE: 26 USC 168 note.>> Effective Date.--The amendment made
by this section shall apply to property placed in service after December
31, 2009.
SEC. 740. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD
INVENTORY.
(a) In General.--Clause (iv) of section 170(e)(3)(C) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
(b) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendment made
by this section shall apply to contributions made after December 31,
2009.
SEC. 741. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF BOOK
INVENTORIES TO PUBLIC SCHOOLS.
(a) In General.--Clause (iv) of section 170(e)(3)(D) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
(b) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendment made
by this section shall apply to contributions made after December 31,
2009.
SEC. 742. ENHANCED CHARITABLE DEDUCTION FOR CORPORATE
CONTRIBUTIONS OF COMPUTER INVENTORY FOR
EDUCATIONAL PURPOSES.
(a) In General.--Subparagraph (G) of section 170(e)(6) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
(b) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendment made
by this section shall apply to contributions made in taxable years
beginning after December 31, 2009.
SEC. 743. ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.
(a) In General.--Subsection (g) of section 179E is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
(b) <<NOTE: 26 USC 179E note.>> Effective Date.--The amendment made
by this section shall apply to property placed in service after December
31, 2009.
SEC. 744. SPECIAL EXPENSING RULES FOR CERTAIN FILM AND TELEVISION
PRODUCTIONS.
(a) In General.--Subsection (f) of section 181 is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
(b) <<NOTE: 26 USC 181 note.>> Effective Date.--The amendment made
by this section shall apply to productions commencing after December 31,
2009.
SEC. 745. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.
(a) In General.--Subsection (h) of section 198 is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
(b) <<NOTE: 26 USC 198 note.>> Effective Date.--The amendment made
by this section shall apply to expenditures paid or incurred after
December 31, 2009.
SEC. 746. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME ATTRIBUTABLE
TO DOMESTIC PRODUCTION ACTIVITIES IN
PUERTO RICO.
(a) In General.--Subparagraph (C) of section 199(d)(8) is amended--
(1) by striking ``first 4 taxable years'' and inserting
``first 6 taxable years''; and
[[Page 124 STAT. 3320]]
(2) by striking ``January 1, 2010'' and inserting ``January
1, 2012''.
(b) <<NOTE: 26 USC 199 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2009.
SEC. 747. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS TO
CONTROLLING EXEMPT ORGANIZATIONS.
(a) In General.--Clause (iv) of section 512(b)(13)(E) <<NOTE: 26 USC
512.>> is amended by striking ``December 31, 2009'' and inserting
``December 31, 2011''.
(b) <<NOTE: 26 USC 512.>> Effective Date.--The amendment made by
this section shall apply to payments received or accrued after December
31, 2009.
SEC. 748. TREATMENT OF CERTAIN DIVIDENDS OF REGULATED INVESTMENT
COMPANIES.
(a) In General.--Paragraphs (1)(C) and (2)(C) of section 871(k) are
each amended by striking ``December 31, 2009'' and inserting ``December
31, 2011''.
(b) <<NOTE: 26 USC 871 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2009.
SEC. 749. RIC QUALIFIED INVESTMENT ENTITY TREATMENT UNDER FIRPTA.
(a) In General.--Clause (ii) of section 897(h)(4)(A) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
(b) <<NOTE: 26 USC 897 note.>> Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
take effect on January 1, 2010. Notwithstanding the preceding
sentence, such amendment shall not apply with respect to the
withholding requirement under section 1445 of the Internal
Revenue Code of 1986 for any payment made before the date of the
enactment of this Act.
(2) Amounts withheld on or before date of enactment.--In the
case of a regulated investment company--
(A) which makes a distribution after December 31,
2009, and before the date of the enactment of this Act;
and
(B) which would (but for the second sentence of
paragraph (1)) have been required to withhold with
respect to such distribution under section 1445 of such
Code,
such investment company shall not be liable to any person to
whom such distribution was made for any amount so withheld and
paid over to the Secretary of the Treasury.
SEC. 750. EXCEPTIONS FOR ACTIVE FINANCING INCOME.
(a) In General.--Sections 953(e)(10) and 954(h)(9) are each amended
by striking ``January 1, 2010'' and inserting ``January 1, 2012''.
(b) Conforming Amendment.--Section 953(e)(10) is amended by striking
``December 31, 2009'' and inserting ``December 31, 2011''.
(c) <<NOTE: 26 USC 953 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years of foreign corporations
beginning after December 31, 2009, and to taxable years of United States
shareholders with or within which any such taxable year of such foreign
corporation ends.
[[Page 124 STAT. 3321]]
SEC. 751. LOOK-THRU TREATMENT OF PAYMENTS BETWEEN RELATED
CONTROLLED FOREIGN CORPORATIONS UNDER
FOREIGN PERSONAL HOLDING COMPANY RULES.
(a) In General.--Subparagraph (C) of section 954(c)(6) <<NOTE: 26
USC 954.>> is amended by striking ``January 1, 2010'' and inserting
``January 1, 2012''.
(b) <<NOTE: 26 USC 954 note.>> Effective Date.--The amendment made
by this section shall apply to taxable years of foreign corporations
beginning after December 31, 2009, and to taxable years of United States
shareholders with or within which any such taxable year of such foreign
corporation ends.
SEC. 752. BASIS ADJUSTMENT TO STOCK OF S CORPS MAKING CHARITABLE
CONTRIBUTIONS OF PROPERTY.
(a) In General.--Paragraph (2) of section 1367(a) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
(b) <<NOTE: 26 USC 1367 note.>> Effective Date.--The amendment made
by this section shall apply to contributions made in taxable years
beginning after December 31, 2009.
SEC. 753. EMPOWERMENT ZONE TAX INCENTIVES.
(a) In General.--Section 1391 is amended--
(1) by striking ``December 31, 2009'' in subsection
(d)(1)(A)(i) and inserting ``December 31, 2011''; and
(2) by striking the last sentence of subsection (h)(2).
(b) Increased Exclusion of Gain on Stock of Empowerment Zone
Businesses.--Subparagraph (C) of section 1202(a)(2) is amended--
(1) by striking ``December 31, 2014'' and inserting
``December 31, 2016''; and
(2) by striking ``2014'' in the heading and inserting
``2016''.
(c) <<NOTE: 26 USC 1391 note.>> Treatment of Certain Termination
Dates Specified in Nominations.--In the case of a designation of an
empowerment zone the nomination for which included a termination date
which is contemporaneous with the date specified in subparagraph (A)(i)
of section 1391(d)(1) of the Internal Revenue Code of 1986 (as in effect
before the enactment of this Act), subparagraph (B) of such section
shall not apply with respect to such designation if, after the date of
the enactment of this section, the entity which made such nomination
amends the nomination to provide for a new termination date in such
manner as the Secretary of the Treasury (or the Secretary's designee)
may provide.
(d) <<NOTE: 26 USC 1202 note.>> Effective Date.--The amendments
made by this section shall apply to periods after December 31, 2009.
SEC. 754. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF
COLUMBIA.
(a) In General.--Subsection (f) of section 1400 is amended by
striking ``December 31, 2009'' each place it appears and inserting
``December 31, 2011''.
(b) Tax-exempt DC Empowerment Zone Bonds.--Subsection (b) of section
1400A is amended by striking ``December 31, 2009'' and inserting
``December 31, 2011''.
(c) Zero-percent Capital Gains Rate.--
(1) Acquisition date.--Paragraphs (2)(A)(i), (3)(A),
(4)(A)(i), and (4)(B)(i)(I) of section 1400B(b) are each amended
by striking ``January 1, 2010'' and inserting ``January 1,
2012''.
(2) Limitation on period of gains.--
[[Page 124 STAT. 3322]]
(A) In general.--Paragraph (2) of section <<NOTE: 26
USC 1400B.>> 1400B(e) is amended--
(i) by striking ``December 31, 2014'' and
inserting ``December 31, 2016''; and
(ii) by striking ``2014'' in the heading and
inserting ``2016''.
(B) Partnerships and s-corps.--Paragraph (2) of
section 1400B(g) is amended by striking ``December 31,
2014'' and inserting ``December 31, 2016''.
(d) First-time Homebuyer Credit.--Subsection (i) of section 1400C is
amended by striking ``January 1, 2010'' and inserting ``January 1,
2012''.
(e) <<NOTE: Applicability. 26 USC 1400m.>> Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
periods after December 31, 2009.
(2) Tax-exempt dc empowerment zone bonds.--The amendment
made by subsection (b) shall apply to bonds issued after
December 31, 2009.
(3) Acquisition dates for zero-percent capital gains rate.--
The amendments made by subsection (c) shall apply to property
acquired or substantially improved after December 31, 2009.
(4) Homebuyer credit.--The amendment made by subsection (d)
shall apply to homes purchased after December 31, 2009.
SEC. 755. TEMPORARY INCREASE IN LIMIT ON COVER OVER OF RUM EXCISE
TAXES TO PUERTO RICO AND THE VIRGIN
ISLANDS.
(a) In General.--Paragraph (1) of section 7652(f) is amended by
striking ``January 1, 2010'' and inserting ``January 1, 2012''.
(b) <<NOTE: 26 USC 7652 note.>> Effective Date.--The amendment made
by this section shall apply to distilled spirits brought into the United
States after December 31, 2009.
SEC. 756. AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.
(a) In General.--Subsection (d) of section 119 of division A of the
Tax Relief and Health Care Act of 2006 <<NOTE: 26 USC 30A.>> is
amended--
(1) by striking ``first 4 taxable years'' and inserting
``first 6 taxable years'', and
(2) by striking ``January 1, 2010'' and inserting ``January
1, 2012''.
(b) <<NOTE: 26 USC 30A.>> Effective Date.--The amendments made by
this section shall apply to taxable years beginning after December 31,
2009.
SEC. 757. WORK OPPORTUNITY CREDIT.
(a) In General.--Subparagraph (B) of section 51(c)(4) is amended by
striking ``August 31, 2011'' and inserting ``December 31, 2011''.
(b) <<NOTE: 26 USC 51 note.>> Effective Date.--The amendment made
by this section shall apply to individuals who begin work for the
employer after the date of the enactment of this Act.
SEC. 758. QUALIFIED ZONE ACADEMY BONDS.
(a) In General.--Section 54E(c)(1) is amended--
(1) by striking ``2008 and'' and inserting ``2008,'', and
(2) by inserting ``and $400,000,000 for 2011'' after
``2010,''.
[[Page 124 STAT. 3323]]
(b) Repeal of Refundable Credit for QZABs.--Paragraph (3) of section
6431(f) <<NOTE: 26 USC 6431.>> is amended by inserting ``determined
without regard to any allocation relating to the national zone academy
bond limitation for 2011 or any carryforward of such allocation'' after
``54E)'' in subparagraph (A)(iii).
(c) <<NOTE: 26 USC 54E.>> Effective Date.--The amendments made by
this section shall apply to obligations issued after December 31, 2010.
SEC. 759. MORTGAGE INSURANCE PREMIUMS.
(a) In General.--Clause (iv) of section 163(h)(3)(E) is amended by
striking ``December 31, 2010'' and inserting ``December 31, 2011''.
(b) <<NOTE: 26 USC 163 note.>> Effective Date.--The amendment made
by this section shall apply to amounts paid or accrued after December
31, 2010.
SEC. 760. TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN ON CERTAIN
SMALL BUSINESS STOCK.
(a) In General.--Paragraph (4) of section 1202(a) is amended--
(1) by striking ``January 1, 2011'' and inserting ``January
1, 2012'', and
(2) by inserting ``and 2011'' after ``2010'' in the heading
thereof.
(b) <<NOTE: 26 USC 1202 note.>> Effective Date.--The amendments
made by this section shall apply to stock acquired after December 31,
2010.
Subtitle D--Temporary Disaster Relief Provisions
PART
Subpart A--New York Liberty Zone
SEC. 761. TAX-EXEMPT BOND FINANCING.
(a) In General.--Subparagraph (D) of section 1400L(d)(2) is amended
by striking ``January 1, 2010'' and inserting ``January 1, 2012''.
(b) <<NOTE: 26 USC 1400L note.>> Effective Date.--The amendment
made by this section shall apply to bonds issued after December 31,
2009.
Subpart B--GO Zone
SEC. 762. INCREASE IN REHABILITATION CREDIT.
(a) In General.--Subsection (h) of section 1400N is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
(b) <<NOTE: 26 USC 1400N note.>> Effective Date.--The amendment
made by this section shall apply to amounts paid or incurred after
December 31, 2009.
SEC. 763. LOW-INCOME HOUSING CREDIT RULES FOR BUILDINGS IN GO
ZONES.
Section 1400N(c)(5) is amended by striking ``January 1, 2011'' and
inserting ``January 1, 2012''.
[[Page 124 STAT. 3324]]
SEC. 764. TAX-EXEMPT BOND FINANCING.
(a) In General.--Paragraphs (2)(D) and (7)(C) of section
1400N(a) <<NOTE: 26 USC 1400N.>> are each amended by striking ``January
1, 2011'' and inserting ``January 1, 2012''.
(b) Conforming Amendments.--Sections 702(d)(1) and 704(a) of the
Heartland Disaster Tax Relief Act of 2008 are each amended by striking
``January 1, 2011'' each place it appears and inserting ``January 1,
2012''.
SEC. 765. BONUS DEPRECIATION DEDUCTION APPLICABLE TO THE GO ZONE.
(a) In General.--Paragraph (6) of section 1400N(d) is amended--
(1) by striking ``December 31, 2010'' both places it appears
in subparagraph (B) and inserting ``December 31, 2011'', and
(2) by striking ``January 1, 2010'' in the heading and the
text of subparagraph (D) and inserting ``January 1, 2012''.
(b) <<NOTE: 26 USC 1400N.>> Effective Date.--The amendment made by
this section shall apply to property placed in service after December
31, 2009.
TITLE VIII--BUDGETARY PROVISIONS
SEC. 801. DETERMINATION OF BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of complying with
the Statutory Pay-As-You-Go Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, jointly submitted for printing in the
Congressional Record by the Chairmen of the House and Senate Budget
Committees, provided that such statement has been submitted prior to the
vote on passage in the House acting first on this conference report or
amendment between the Houses.
SEC. 802. EMERGENCY DESIGNATIONS.
(a) Statutory Paygo.--This Act is designated as an emergency
requirement pursuant to section 4(g) of the Statutory Pay-As-You-Go Act
of 2010 (Public Law 111-139; 2 U.S.C. 933(g)) except to the extent that
the budgetary effects of this Act are determined to be subject to the
current policy adjustments under sections 4(c) and 7 of the Statutory
Pay-As-You-Go Act.
(b) Senate.--In the Senate, this Act is designated as an emergency
requirement pursuant to section 403(a) of S. Con. Res. 13 (111th
Congress), the concurrent resolution on the budget for fiscal year 2010.
[[Page 124 STAT. 3325]]
(c) House of Representatives.--In the House of Representatives,
every provision of this Act is expressly designated as an emergency for
purposes of pay-as-you-go principles except to the extent that any such
provision is subject to the current policy adjustments under section
4(c) of the Statutory Pay-As-You-Go Act of 2010.
Approved December 17, 2010.
LEGISLATIVE HISTORY--H.R. 4853:
---------------------------------------------------------------------------
CONGRESSIONAL RECORD, Vol. 156 (2010):
Mar. 17, considered and passed House.
Sept. 23, considered and passed Senate, amended.
Dec. 2, House concurred in Senate amendment with an
amendment. Senate considered concurring in House
amendment with an amendment.
Dec. 4, 9, 13-15, Senate considered and concurred in House
amendment with an amendment.
Dec. 16, House concurred in Senate amendment.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2010):
Dec. 18, Presidential remarks.
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